Portugal invests 200 million euros in an AI Gigafactory

Portugal invests 200 million euros in an AI Gigafactory - Portugal Business News

Tech News Europe - Portugal will invest 200 million euros in an AI Gigafactory, an amount that is expected to be matched by the EuroHPC. This investment will allow the mobilization of up to 400 million euros in joint investment for computing capacity during the first phase. Portugal´s total investment in AI Gigafactories will ultimately reach around 4 billion euros.

Portugal´s Council of Ministers approved a set of measures that strengthen Portugal´s investment in the installation and operation of an AI Gigafactory, according to an announcement dated June 26, 2026.

"This Gigafactory ensures that Portugal will have sovereign capacity for the production of artificial intelligence" - Portugal´s Deputy Minister for State Reform, Gonçalo Matias.

What is Portugal´s investment in AI Gigafactories in Europe?

Portugal will join an Iberian bid for the European EuroHPC program to create seven AI Gigafactories in Europe that is an expected investment of around 4 billion euros. Portugal´s investment in AI Gigafactories in Europe represents an investment in strategic infrastructure for the technological sovereignty, economic competitiveness, and digital transformation of Europe.

The European High-Perfomance Computing Joint Undertaking (EuroHPC JU) is pooling European resources and efforts to to develop a World Class exascale supercomputing Ecosystem in Europe.

Portugal´s investment in the first AI Gigafactory could reach a maximum of 200 million euros, an amount that is expected to be matched by the EuroHPC. This will lead to the mobilization of up to 400 million euros in joint investment for computing capacity through the first phase of the development of AI Gigafactories in Europe.

What will be the benefits of Portugal´s first AI Gigafactory?

The first AI Gigafactory will allow Portugal to have its own computing capacity for AI applications, ensuring that the most sensitive data remains under national control and in compliance with European security and trust rules.

The installed capacity will be equally available to small and medium-sized enterprises, startups, researchers, and the Public Administration, promoting the adoption of AI while increasing productivity and strengthening innovation in different sectors of Portugal´s economy.

Portugal´s AI Gigafactory investment fulfills objectives defined in the National Agenda for Artificial Intelligence and in the National Data Center Plan, that will contribute to the creation of a national AI ecosystem based on its own computing capacity, innovation, competitiveness, and strategic autonomy.